Hong Kong is a city which attracts lot of business owners and investors and this is because of its geographic location and free economy. If you are planning to invest here then you must select business based on your need. There are a few things that you must take into consideration before even you start filling the registration application for Hong Kong company formation and they are:
- Liability is the first thing that you must take into consideration. Know about it and then start planning.
- If you already have a company then instead of starting a new one continuity of the same will be a better option.
- Finance is something that you will need for company formation. Make sure that sourcing is easy.
- Lastly, being an owner you will like to have full control of things. Check if you will be able to concentrate and have controlling power before you think of setting up your company in Hong Kong.
The types of company that you can form in Hong Kong are:
As the name itself suggests, to form a sole company you will just need one person. The person will be the owner and the investor of the company. He/she will enjoy the profit or loss from the business. Getting a sole company registered is easy. All you need to do is fill in the registration application and wait for the license which will be received within 30 days.
Along with advantages sole ownership business has certain disadvantages too. Being a sole business owner you might have to face financial crunch, especially when you start thinking of expansion. Discussions are important and they help in taking important steps when it comes to business planning and this advantage you cannot enjoy in sole proprietorship.
Partnership means in this kind of business you will have people with you who will invest and share profit. All the partners doing business together are owners and their number can vary from 2 to 20. For partnership Hong Kong Company formation you can start with business operation and within a month fill in form and apply forregistration certificate.
You will also have to sign an agreement before getting the company registered. As per Partnership New Company Ordinance of Hong Kong the agreement must have clear information about the control and rights, obligation etc that the partners will share. The agreement can be on papers or verbal but mutual consent is important.
This refers to just an extension of business, especially for overseas companies. Companies having office overseas can register, open office and start business operations in Hong Kong. Representative companies cannot engage in other activities for money. They can just source money from the parent company they already own.
For registering there are few things that you will need and two of them are: Local address, which should be registered and a local person who will represent the company. Hiring a local person has several advantages, especially if you are a foreigner. The person hired by you will have knowledge about the local Hong Kong market which will help you keep track on things and earn profit.